Super Retail, the owner of Rebel, Super Cheap Auto, BCF and Rays, posted a 22.6% fall in full year profit to $62.8 million as the group restructures some divisions and prepares for expansion.
Revenue was up 8.2% to $2.42 billion, reflecting a strong performance in its auto and sports divisions.
Profits were dragged down mainly by the continued under performance of the Ray’s Outdoors business.
The company booked $45.8 million in after tax restructuring costs for Ray’s Outdoors and the Infinite Retail.
“The transformation of the Ray’s Outdoors and Infinite Retail businesses and the completion of the supply chain transformation project mean we have addressed issues that have constrained earnings growth in recent years,” says CEO Peter Birtles.
“We have a portfolio of market-leading businesses with capacity for significant top line growth through new stores and
like for like growth, and for margin improvements driven by customer engagement, range and promotion management and supply chain productivity.”
The company plans to open 20 new stores in 2017, on top of 17 Ray’s Outdoors stores which are closing and will be converted into other group brands.
“As we head into a period of low inflation, it will be our ability to embrace the changing dynamics of the retail industry that will enable us to outpace the markets in which we operate,” says Birtles.
A final dividend of 21.5 cents a shares was declared, bringing the full year dividend to 41.5 cents, a rise of 3.8%.